Canadian Bitcoin (BTC) mining company Bitfarms is facing compliance issues on its Nasdaq listing due to the ongoing cryptocurrency winter.
Bitfarms received a warning notice from Nasdaq on December 13 because the company’s share price has remained below $1 for 30 consecutive trading days.
Announcing the news on December 14, Bitfarms said it has an initial period of 180 calendar days to re-comply with Nasdaq’s requirements.
To regain compliance, Bitfarms shares must close at $1 per share for a minimum period of 10 consecutive days any time before June 12, 2023. In such a case, Nasdaq staff will notify Bitfarms in writing that it has achieved compliance, the announcement states.
However, the 180-day period is not the final limit. Bitfarms noted that it will have the opportunity to further extend the compliance period even after June 12:
“If the business does not return to compliance with Rule 5550(a)(2) by June 12, 2023, the business may be eligible for an additional 180 calendar day compliance period.”
The company stressed that the Nasdaq letter is just a notification and does not have any immediate effect on listing or trading, as Bitfarms (BITF) shares will continue to be listed on the exchange.
Bitfarms also noted that the company remains listed on the Toronto Stock Exchange and that the latest notification from Nasdaq has no impact on the firm’s listing compliance status or its business operations.
As Cointelegraph previously reported, Bitfarms debuted for stock trading on Nasdaq in June 2021, just months after going public on the Toronto Stock Exchange in April.
After hitting an all-time high of roughly $6 in December 2021, Bitfarms shares have been gradually selling off on Nasdaq, in line with the current cryptocurrency bear market.
According to data from TradingView, Bitfarms shares fell below $1 at the end of October 2022 and have not retested the $1 price mark since. Bitfarms shares closed at $0.54 on December 13, seeing a 7.6% gain over the day.
Bitfarms is one of many cryptocurrency mining companies facing big problems due to the current market crisis. In June, the company was forced to sell around $62 million of self-mined Bitcoin in order to reduce its debt. Other mining companies, such as Argo Blockchain, Core Scientific, and Riot Blockchain, have also chosen to sell their bitcoins amid harsh market conditions.
On Dec. 12, Argo Blockchain said that it had been considering selling its assets to avoid filing for bankruptcy.
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